Cochlear stock plunges 40% after profit forecast cut to A$290 million-A$330 million
Cochlear, the Australian company behind hearing implants, just saw its stock drop by 40%, its sharpest fall since 1995.
The reason? They slashed their profit forecast for the year to A$290 million to A$330 million (down from A$435 million to A$460 million), saying earlier estimates were at the lower end of the range.
Cochlear tightens costs warns A$10 million risk
Cochlear pointed to shaky consumer confidence, especially in the US which has led people to cut back on health care spending.
The ongoing war involving Iran and weaker market conditions in places like Europe have made things even tougher.
To cope, Cochlear is tightening costs and preparing for up to A$10 million in potential losses from unpaid bills.
Plus, surgery backlogs in countries like the UK and Germany are adding more pressure.